The honest answer
Is a novated lease worth it?
Short version: for a lot of people it is, and for an eligible electric car it is usually the best car deal going. But it depends on your salary, the car and how long you keep it. Here is how to tell, without the sales gloss.
When a novated lease is worth it
A novated lease pays for your car and its running costs from your pre-tax salary, and you save the GST on the purchase price. That is real money.
- You pay income tax, and your employer offers salary packaging (most large ones do)
- You want an electric car under $91,661, which is FBT exempt and the strongest case of all
- You will actually drive it and keep it for the lease term
When it might not stack up
It is not automatic. A novated lease can be the wrong call if your taxable income is low (less tax to save), if you buy a petrol car and drive very few kilometres, or if you are likely to end the lease early. We will tell you that rather than push a deal that does not suit you.
How to know for sure
Do not guess from a national average. Put your real numbers into the calculator: it shows your weekly cost, exactly what you save, and every fee, including the true interest rate. If it is not worth it for you, you will see that too.